This indicator determines how strong each base currency is and assigns to it a score from 0 to 10 by comparing it against 9 of its counter-currencies. Thus, you can get the whole picture of how well each specific currency is performing against the overall market.
How Does It Work
Find Strong and Weak Currencies
This indicator shows a value of 0 to 10 for each of 10 base currencies showing how strong the specific base currency is.
- A value closer to 10 implies a strong base currency whose value is increasing.
- A value closer to 0 implies a weak base currency whose value is decreasing.
This value is calculated by comparing a currency against several of its counter-currencies to provide a general overview of how strong this base currency is in the markets and not just against a single currency.
Find Strong Trending Pairs to Trade
Buy a currency with a high score (e.g., above 6.5) while selling it against a currency with a low score (e.g., below 4.5).
Example 1: CAD has a high score of 8.0 while EUR has a low score of 3.4. So, sell EUR and buy CAD. Hence, SELL EURCAD. It can be seen at the chart below how EURCAD is falling (check EURCAD example snapshot).
Example 2: AUD has a high score of 7.1 while NZD has a low score of 2.6. So, buy AUD and sell NZD. Hence, BUY AUDNZD. It can be seen at the chart below how AUDNZD is rising (check AUDNZD example snapshot).
For each currency pair relating to a specific currency (Specific Currency Crosses), a score of 0-10 is derived. The score is computed by using 10 trend indicators. Each indicator adds +1 or -1 to the score depending on the direction of the trend it points at. After the calculation of all specific currency crosses have been completed, a weighted average is calculated to find the final score for the specific currency.
Currency Settings. These options relate to the currencies used in forming the table.
- Currency# – select the base currency to be used in position #. It is important to write only a currency, not a currency pair.
- terminalsuffix – if your broker is using a suffix in the symbol's name, include it here.
- terminalprefix – if your broker is using a prefix in the symbol's name, include it here.
- useweights – setting this to true will imply that each currency will carry different weight in the overall calculation of individual currency power. Setting it to false will imply equal weights for all currencies.
- weightsCurrency# – here you define the weights each currency will take in the strength calculation of the currency#. Need to enter 10 numbers separated by a comma ",". The nth number will correspond the weight of the nth currency. (Example: Currency# is USD. The string is "1,2,3,4,5,6,7,8,9,10". Currency pair #1 will get a weight of 1, currency pair #2 will get a weight of 2, currency pair #3 will get a weight of 3, currency pair #4 will get a weight of 4, currency pair #10 will get a weight of 10).
- shift(0) – the number of periods (candles) to be processed during the analysis. Change this number to see how the currency powers change over time.
- MaLongMethod(0) – averaging enumeration method for longer Moving Average period. It can take the following values (0 - Simple, 1 - Exponential, 2 - Smoothed, 3 - Linear-Weighted).
- MaLongLength(55) – averaging period for calculation of a longer Moving Average period.
- MaShrtMethod(0) – averaging enumeration method for a shorter Moving Average period. It can take the following values (0 - Simple, 1 - Exponential, 2 - Smoothed, 3 - Linear-Weighted).
- MaShrtLength(20) – averaging period for calculation of a shorter Moving Average period.
- RSIlength(14) – averaging period for calculating RSI indicator.
- RSIlevel(50) – threshold level, above/below which the trend is determined Up/Down using RSI indicator.
- MACDFastEMA(12) – Fast EMA averaging period for calculating MACD indicator.
- MACDSlowEMA(26) – Slow EMA averaging period for calculating MACD indicator.
- MACDSMA(9) – signal line averaging period for calculating MACD indicator.
- SARstep(0.02) – stop increment for Parabolic SAR indicator.
- SARmax(0.2) – stop increment for Parabolic SAR indicator.
- MOMlength(22) – maximum stop value for calculating Momentum indicator.
- MOMtrendLevel(100) – threshold level, above/below which the trend is determined Up /Down using Momentum indicator.
- ADXperiod(14) – averaging period for calculating Average Directional Movement Index indicator.
- textColor – color of text to be displayed.
- TextSize – size of text to be displayed.
- corner – value 0 to 4 to determine corner location of the table.
- xstart – horizontal coordinate for starting location of the table.
- xgap – horizontal gap of shapes used in the table.
- ystart – vertical coordinate for the starting location of the table.
- ygap – vertical gap of shapes used in the table.
- emptybarcol – color to be used for the part of the bars that is not filled. If you do not want it to be displayed, you can set it the same as the chart background color.
- lvcol# – color to be used for part of the bar that gets a currency power score of #.